Oct 05, 2012
Transport giant sees SA rail success as integral to African aspirationsBack
Berlin|Salzgitter|Alstom Transport|Lafarge|Africa|Algeria|Brazil|China|Germany|India|Kazakhstan|Morocco|Russia|South Africa|Technology Transfer|Transport|Andreas Knitter|Henri Poupart-Lafarge|Central Europe|North Europe|South Africa|Sub-Saharan Africa
© Reuse this
He noted that, if successful, this would enable Alstom Transport to establish a base in South Africa from where it could eventually serve the rest of Africa.
Poupart-Lafarge noted that the R123-billion Prasa tender, which was aimed at the procurement of 7 224 new commuter coaches over 20 years in two ten-year contracts, and for which bids closed at the end of September, was a complex tender for both Alstom and South Africa, given the 65% localisation target.
Nevertheless, he believes Alstom has proved it is serious about localisation and technology transfer.
Alstom again reiterated its successful localisation strategies in other emerging econo- mies, including Brazil, Russia, India, China, Morocco, Algeria and Kazakhstan.
Further, Poupart-Lafarge said that, while Alstom was used to complex tenders, this was a particularly complex one, especially given the black economic-empowerment (BEE) requirements, which were expected to be announced by Prasa at the end of September.
BEE investors were expected to obtain a 30% equity interest in a project company that would be established to manufacture the passenger coaches.
Meanwhile, Alstom Transport was also planning to participate in Transnet Freight Rail’s (TFR’s) tender to procure 599 new dual- voltage electric locomotives for its general freight business by 2019. TFR’s tender is also subject to a localisation target of 60%.
Poupart-Lafarge stated that, if Alstom Transport failed to secure either of these tenders, it would be difficult to enter the South African market, given the size of the domestic rail market.
He noted that the company would have to ensure that there was an adequate economic incentive to establish a base in South Africa.
Meanwhile, Alstom Transport senior VP for North and Central Europe and Africa Andreas Knitter agreed that securing a substantial order in South Africa would enable the company to make further inroads into the rest of sub-Saharan Africa.
There was good opportunity in the region, but entry into that market would not be quick and not of the same magnitude as in South Africa, he said.
He indicated that the distances between most of South Africa’s major cities made it unfeasible to launch such services, as it was best to limit high-speed transport between two cities to three hours.
Meanwhile, Alstom Transport also hosted South African journalists at one of its largest manufacturing factories, in Salzgitter, Germany.
The 200 000 m2 factory employs between 2 400 and 2 500 staff and produced about 140 trainsets, with on average four cars per trainset, in 2010. This will increase to about 210 trainsets a year over the next three years.
The Prasa tender will require the manufacture of about 360 cars a year.
The factory also produces about 1 000 bogies a year and undertakes the repair of about 3 600 freight locomotives a year.
Most manufacturing processes in the train manufacturing sector are not conducive to auto- mation, given that only a limited number of the same components are reproduced for any given contract.
Further, machines are not precise enough to achieve the required tolerances.
This means that a high number of skilled individuals, including welders, are required to work in such factories.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines
Other Transport & Logistics News
Updated 3 hours ago Malawi and Zambia this week secured a $73.6-million loan from the African Development Bank (AfDB) to advance Phase IV of the multinational Nacala Road Corridor development project. The facility, approved through AfDB concessionary arm, the African Development Fund,...
Updated 5 hours ago Investing in emerging markets like South Africa was still a good investment despite the global financial situation, deputy governor of the South African Reserve Bank Daniel Mminele said on Wednesday. "Emerging markets appear to be adjusting both cyclically and...
Updated 2 hours 12 minutes ago JSE-listed Vunani Property Investment Fund (VPIF) has entered into an agreement with Magakabye Property Services to buy rental enterprise Wellington Road, in Parktown, Gauteng, measuring 12 140 m2 collectively, for R102.5-million. This transaction was a step towards...
Updated 2 hours 17 minutes ago Telecommunications group Telkom has appointed Ian Russell chief procurement officer, with effect from February 1, as it continues to strengthen its top leadership team. This follows the recent appointment of Len de Villiers as chief information officer and Enzo...
Updated 3 hours ago Eskom CEO Brian Dames has resigned from the position for personal reasons and will depart at the end of March. Dames has spent 25 years at Eskom and took over from former CEO Jacob Maroga in July 2010, following Maroga's acrimonious dispute with his board and then...
Recent Research Reports
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 Report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
Projects in Progress - Second Edition (PDF Report)
Creamer Media’s second Projects in Progress supplement considers some of the major project developments under way, including high-profile energy and transport projects, as well as a few of the lower-profile public and private developments. What remains apparent is...
Water 2013: A review of South Africa’s water sector (PDF Report)
Creamer Media’s Water 2013 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Canadian Mining Roundup for June 2013 (PDF Report)
The June 2013 roundup includes details of the development of TSX-V-listed Aldridge Minerals’ flagship Yenipazar polymetallic project, in Turkey; the Canadian Nuclear Safety Commission’s renewal of Cameco’s uranium mining licence pertaining to the Cigar Lake...
This Week's Magazine
Updated 4 hours ago As US car maker Ford on Thursday unveiled its new Mustang on the global stage, Ford Motor Company of Southern Africa (FMCSA) announced that local fans can look forward to seeing the iconic pony car in local showrooms in 2015. The new Ford Mustang has been redesigned...
Updated 4 hours ago MAN Truck & Bus South Africa (SA) has opened a new R180-million parts distribution centre (PDC) in Germiston, Gauteng. The new facility, located roughly four kilometres from the company’s Isando headquarters and the OR Tambo International Airport, has been designed...
Does crime, political enemies or shady business deals make you a little bit nervous? Looking for an armoured sports-utility vehicle (SUV)? Mercedes-Benz has the product for you. The new R2.3-million ML500 Guard vehicle has been unveiled in South Africa. The M-Guard,...
A joint venture (JV) company created by South Africa’s Denel defence industrial group and the United Arab Emirates (UAE) group Tawazun has won a R5-billion contract for precision guided munition (PGM) systems for the UAE Air Force. The JV is Tawazun Dynamics and it...
A dry flue-gas desulphurisation (dry FGD) system uses a lime-based reagent to remove sulphur oxides (SOx) from the flue gases of any combustion installation without using water, says gas and energy specialist engineering company Tractebel Engineering South Africa...